CIT has hired a bankruptcy specialist:
CIT Group Inc., the century-old lender to 950,000 businesses that has been unable to persuade the Federal Deposit Insurance Corp. to guarantee its debt sales, hired bankruptcy specialist Skadden, Arps, Slate, Meagher & Flom LLP as an adviser amid a plunge in its stock and bonds.
CIT has stated:
in response to recent media reports regarding its pending Temporary Liquidity Guarantee Program (TLGP) application with the FDIC, confirmed that its application to participate in the TLGP remains outstanding. CIT continues to be in active dialogue with the government. There can be no assurance that CIT’s application will be approved by the FDIC, nor as to the timing or terms of any such determination.
and
today confirmed that it remains in active discussions with its principal regulators on a series of measures to improve the company’s near-term liquidity position.
Among the matters being discussed are the Company’s application to participate in the FDIC’s Temporary Liquidity Guarantee Program. The Company is also actively discussing liquidity solutions that do not involve access to the TLGP program, such as the near-term transfer of assets into CIT Bank through Section 23A waivers and the transfer of its Vendor Finance and Trade Finance businesses into CIT Bank; these transfers if approved would enhance CIT’s liquidity position
After the bell, it was reported that:
The U.S. government is in advanced discussions to give aid to CIT Group Inc., the Wall Street Journal reported on its Web site, without saying where it got the information.
One option would have the FDIC backing the company’s debt, according to the newspaper.
The fallout from the BofA/Merrill takeover continues to be fascinating:
Regulators contend Bank of America owes at least part of a $4 billion fee it agreed to pay in January — even without a completed legal document — because the company benefited from implied U.S. backing on about $118 billion of Merrill Lynch assets, such as mortgage-backed bonds, people familiar with the matter said. The Charlotte, North Carolina-based bank says it owes the Treasury nothing, according to the people, who declined to be identified because the negotiations are confidential.
The major subindices squeaked out another win today, amidst good volume.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0558 % | 1,154.8 |
| FixedFloater | 7.20 % | 5.44 % | 36,966 | 16.71 | 1 | -0.3121 % | 2,132.4 |
| Floater | 3.30 % | 3.86 % | 75,038 | 17.74 | 3 | -0.0558 % | 1,442.7 |
| OpRet | 4.99 % | -2.91 % | 121,368 | 0.09 | 15 | 0.1391 % | 2,210.5 |
| SplitShare | 6.13 % | 4.54 % | 92,439 | 4.15 | 4 | 0.1855 % | 1,912.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1391 % | 2,021.3 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0571 % | 1,758.3 |
| Perpetual-Discount | 6.30 % | 6.31 % | 157,272 | 13.43 | 71 | 0.0571 % | 1,619.4 |
| FixedReset | 5.57 % | 4.28 % | 536,622 | 4.28 | 40 | 0.0786 % | 2,064.1 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| SLF.PR.B | Perpetual-Discount | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 18.46 Evaluated at bid price : 18.46 Bid-YTW : 6.57 % |
| GWO.PR.F | Perpetual-Discount | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 22.84 Evaluated at bid price : 23.07 Bid-YTW : 6.45 % |
| SLF.PR.E | Perpetual-Discount | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 16.96 Evaluated at bid price : 16.96 Bid-YTW : 6.71 % |
| GWO.PR.I | Perpetual-Discount | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 18.02 Evaluated at bid price : 18.02 Bid-YTW : 6.31 % |
| NA.PR.O | FixedReset | 1.14 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2014-03-17 Maturity Price : 25.00 Evaluated at bid price : 27.42 Bid-YTW : 4.21 % |
| RY.PR.W | Perpetual-Discount | 1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 20.13 Evaluated at bid price : 20.13 Bid-YTW : 6.20 % |
| BAM.PR.J | OpRet | 1.63 % | YTW SCENARIO Maturity Type : Soft Maturity Maturity Date : 2018-03-30 Maturity Price : 25.00 Evaluated at bid price : 21.76 Bid-YTW : 7.54 % |
| CL.PR.B | Perpetual-Discount | 2.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 24.16 Evaluated at bid price : 24.46 Bid-YTW : 6.44 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.I | FixedReset | 98,909 | RBC crossed two blocks of 40,000 each at 25.50. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 25.50 Evaluated at bid price : 25.55 Bid-YTW : 4.47 % |
| RY.PR.Y | FixedReset | 66,665 | National bought 14,600 from anonymous at 27.75. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-12-24 Maturity Price : 25.00 Evaluated at bid price : 27.65 Bid-YTW : 4.21 % |
| TD.PR.G | FixedReset | 62,560 | Scotia crossed 24,800 at 27.62; National bought 10,800 from Nesbitt at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-05-30 Maturity Price : 25.00 Evaluated at bid price : 27.60 Bid-YTW : 3.88 % |
| TD.PR.S | FixedReset | 57,245 | RBC crossed 15,000 at 24.95. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 24.95 Evaluated at bid price : 25.00 Bid-YTW : 4.22 % |
| BMO.PR.M | FixedReset | 52,880 | Nesbitt crossed 20,000 at 25.38. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2039-07-13 Maturity Price : 25.31 Evaluated at bid price : 25.36 Bid-YTW : 4.26 % |
| BNA.PR.D | SplitShare | 46,575 | Recent new issue. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2014-07-09 Maturity Price : 25.00 Evaluated at bid price : 24.90 Bid-YTW : 7.40 % |
| There were 40 other index-included issues trading in excess of 10,000 shares. | |||